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Island's Raleigh-Durham connection could be severed, says Shadow Tourism

American Airlines' popular North Carolina shopping hub and tourist gateway, Raleigh-Durham, may be under threat, Shadow Tourism Minister Mr. David Allen claimed yesterday.

Mr. Allen was among 6,000 delegates to the World Congress of the American Society of Travel Agents in Lisbon, Portugal, last week.

From what he heard at the conference, "Clearly Bermuda has to be vigilant in the face of potential sweeping changes in not only the airline industry but tourism generally,'' he said.

"While most people I met (at the congress) have been optimistic about the future, they did not mince words about the challenges that lie ahead. I was, for example, told by industry insiders, that continuance of American Airlines' hub Raleigh-Durham, a gateway vital to Bermuda's tourism interests, may well be threatened in the near future due to the financial problems being experienced by the airline which is by no means the only carrier facing uncertainties.'' Airlines have reported a cumulative loss of $15.6 billion on international scheduled services, he noted. Delta alone has lost more than $1.5 billion in the last four years.

"Delta was already feeling the heat from American travel agents attending the congress as a result of Delta's slashing of travel agents' commissions as a way to fight unprofitability,'' he said. "A number of agents are threatening to boycott the airline, which is the only carrier serving Bermuda out of Atlanta.'' Both American Airlines' local manager Ms Carole DeCouto and Tourism Minister the Hon. Jim Woolridge were unavailable for comment as they are off the Island this week.